Configurable Node Operator Share — Additional Reward Mechanism For DMD Diamond Ecosystem’s Participants — DMD Diamond

One of the core values of the DMD Diamond Blockchain is the absolute decentralization of our ecosystem’s operations. We prioritize inclusivity and broadening the participation of every DMD Diamond coin holder in our blockchain ecosystem. Irrespective of your technical expertise level, DMD Diamond’s reward mechanisms cover you once you participate in the ecosystem’s operations.

In addition to getting rewards through being a validator candidate or delegated staker on top of a validator, configurable node operator share is another way of having a fair share of DMD Diamond’s epoch reward. What is a configurable node operator share? Configurable node operator share is a reward mechanism in which a node owner delegates a share of its owner rewards toward a different node operator address.

You may also be wondering why configurable node operators share. Configurable node operator share is aimed at DMD Diamond coin holders who want to earn rewards by owning a node but need to gain the skill set to operate a node. For example, you may have the minimum 10,000 DMD Diamond coins required for a validator candidate but need more technical know-how to operate our blockchain node on a Linux server. A way to maintain node ownership (rather than choosing to be a delegated staker on another validator candidate) and also earn node owner reward (at the end of epoch) is to delegate node operatorship to another candidate with the skillset, and ultimately give the candidate a share of node owner rewards.

A node owner gets an upfront 20 percent of each epoch reward because he owns the node. From it, some percentage is shared with the node operator because of his role. The node owner reward (20%) is configurable for each pool, allowing a portion of this share (0.001% — 20%, where 20% means 100% of the node owner reward) to be forwarded to the node operator. A node operator address can be set up during the pool creation step or anytime after the pool creation in their profile on the Diamond-UI. It is editable once per epoch. One target address can be active at a time; setting a new one disables the old one.

It’s noteworthy to state that node owners have the keys that hold the staked DMD Diamond coins. The ability to participate in the DAO voting also stays with the node owners. Therefore, the configurable node operator share mechanism offers an avenue for node hosting business to any users who want to provide it. However, a node owner must ascertain his trust level in any node operator he wishes to use. You would solely be responsible for any misbehavior on the node, which can also get you some trust score penalties. This is because only the node owner has access and the ability to withdraw the staked coins. The node operator only has access to the node and the miner address on the node. The miner’s address never holds coins but only gets the right to provide the work for the owner-generated pool.

Learn more:

Whitepaper: https://github.com/DMDcoin/whitepaper/wiki

Github: https://github.com/dmdcoin